Nomura Securities Maintains a 'Neutral' on Wyndham Worldwide (WYN); Repurchases Drive Growth
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Price: $51.75 --0%
Rating Summary:
7 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Wyndham Worldwide (NYSE: WYN) price target raised $2 to $48.00.
Analyst, Harry Curtis, said, "2012 EBITDA growth should lag EPS growth, which is bolstered by 2011’s $902m share repurchase and our $600m 2012 repurchase forecast. Financial engineering aside, we expect lodging (WHG) EBITDA to grow 16%, driven by 6% RevPAR growth, 120bps of margin growth, system expansion, and growth in other lodging revenues. WYN’s FCF appears sustainable through 2015, assuming inventory reinvestment of ~$120. We expect 2012 FCF and FCF yield of $657m and 10%, 2013 of $731m and 12%, and 2014 of $748m and 14%. Given the level of FCF, we think that share buybacks and dividend increases should continue. We’re maintaining our 2012 EPS estimate at $2.98, (+$0.05 from repurchases) and our 2013 EPS of $3.77 (+$0.43 from repurchases). Our estimates indicate a 21% EPS CAGR through 2014 (12% ex. repurchases)."
For an analyst ratings summary and ratings history on Wyndham Worldwide click here. For more ratings news on Wyndham Worldwide click here.
Shares of Wyndham Worldwide closed at $43.42 yesterday.
Analyst, Harry Curtis, said, "2012 EBITDA growth should lag EPS growth, which is bolstered by 2011’s $902m share repurchase and our $600m 2012 repurchase forecast. Financial engineering aside, we expect lodging (WHG) EBITDA to grow 16%, driven by 6% RevPAR growth, 120bps of margin growth, system expansion, and growth in other lodging revenues. WYN’s FCF appears sustainable through 2015, assuming inventory reinvestment of ~$120. We expect 2012 FCF and FCF yield of $657m and 10%, 2013 of $731m and 12%, and 2014 of $748m and 14%. Given the level of FCF, we think that share buybacks and dividend increases should continue. We’re maintaining our 2012 EPS estimate at $2.98, (+$0.05 from repurchases) and our 2013 EPS of $3.77 (+$0.43 from repurchases). Our estimates indicate a 21% EPS CAGR through 2014 (12% ex. repurchases)."
For an analyst ratings summary and ratings history on Wyndham Worldwide click here. For more ratings news on Wyndham Worldwide click here.
Shares of Wyndham Worldwide closed at $43.42 yesterday.
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